Fully collateralized automated market maker

This application claims the benefit of U.S. Provisional Application No. 63/366,595, filed on Jun. 17, 2022. This application is related to U.S. application Ser. No. 18/336,679, titled “Multisignature Custody of Digital Assets”, filed on Jun. 16, 2023, which claims the benefit of U.S. Provisional Application No. 63/366,589, filed on Jun. 17, 2022, and U.S. application Ser. No. 18/336,924 titled “NFT Enforcement Control System”, filed on Jun. 16, 2023, which claims the benefit of U.S. Provisional Application No. 63/366,590, filed on Jun. 17, 2022. The entire teachings of the above applications are incorporated herein by reference.

A blockchain may be implemented as a peer-to-peer (P2P), electronic ledger that is implemented as a computer-based decentralized, distributed system made up of blocks, which, in turn, are made up of transactions. Each transaction may be a data structure that encodes a transfer of control of a digital asset between participants in the blockchain system, and that includes at least one input and at least one output. Each block may contain a hash of a previous block so that blocks become chained together to create a permanent, unalterable record of all transactions that have been written to the blockchain since its inception. Transactions may contain small programs, known as scripts, embedded into their inputs and outputs; the scripts may specify how and by whom the outputs of the transactions can be accessed.

Blockchain may be used for implementation of “smart contracts” that can be associated with digital asset. These are computer programs designed to automate execution of terms of a machine-readable contract or agreement. Unlike a traditional contract, which would be written in natural language, a smart contract is a machine-executable program that may include rules for processing inputs to generate results; these results may then cause actions to be performed depending upon those results. With respect to commercial transactions, for example, these may involve a transfer of property rights and/or assets.

An area of blockchain-related interest is the use of “tokens” to represent and transfer assets via the blockchain. A token serves as an identifier that allows an asset to be referenced from the blockchain. Fungible tokens are uniform. In other words, fungible tokens of the same type are identical in specification, and each fungible token is identical to another fungible token of the same type. Fungible tokens may be divisible into smaller amounts. Similar to currency, where bills can be divided into coins of an equivalent value, fungible tokens may be divisible. Non-fungible tokens (NFTs), however, cannot be replaced with other tokens of the same type. NFTs represent non-fungible assets. Non-fungible assets have unique information or attributes. Each NFT is unique and differs from other tokens of the same class, and, unlike a fungible token, NFTs typically cannot be divided. Blockchain gaming systems may use tokens or NFTs to create different parts of the game, such as rules, characters, weapons, and skins.

Cryptocurrency wallets may be implemented to securely store and manage blockchain assets, tokens, NFTs, and cryptocurrencies. These wallets may allow users to spend, receive, and trade digital assets.

Embodiments include a computer-based system for providing liquidity for exchanges of digital assets. In some embodiments, the system includes a blockchain network with multiple nodes. A node of the plurality of nodes may be configured to execute an automated market maker (AMM) cryptographic system. The automated market maker (AMM) cryptographic system may be configured to receive collateral digital assets, including non-fungible token (NFT) assets, from other nodes of the multiple nodes, encapsulate, e.g., via a packetizer, the received collateral digital assets in a collateral pool, and mint a collateral token from the received collateral digital assets encapsulated in the collateral pool. The collateral token may be configured to consolidate liquidity within a blockchain protocol for an exchange of a digital asset. The blockchain network may implement a blockchain clearinghouse control system configured to process the collateral token. In addition, the blockchain clearinghouse control system may be configured to approve the exchange of the digital asset if the exchange is performed on or facilitated by the node or disapprove the exchange of the digital asset if the exchange is performed separately from the node. Such a blockchain clearinghouse control system thereby ensures that the exchange is secure and that the automated market maker (AMM) cryptographic system provides liquidity to support the exchange of the digital asset.

In an embodiment, the node may include a machine learning (ML) oracle configured to compute a computational value for the collateral token and distribute the collateral token for exchange at the computational value. Such a machine learning (ML) oracle thereby computes an exchange value of the collateral token.

In another embodiment, the node may be further configured to computationally quantify supply of, and demand for, tokens among the multiple nodes of the blockchain network. The tokens may include the collateral token.

Further, in yet another embodiment, the blockchain network may provide a decentralized platform for the exchange of the digital asset.

In an example embodiment, the node may be further configured to reduce friction in the blockchain network by providing continuous liquidity for the exchange of the digital asset by iteratively minting collateral tokens from either a bounded or unbounded supply of collateral digital assets. According to one such example embodiment, the collateral digital assets may include non-cryptographic digital assets.

In another example embodiment, the digital asset may include a NFT.

Further, in yet another example embodiment, the blockchain clearinghouse control system may be implemented as a clearinghouse embedded virtual machine (VM) executing on one or more cryptoprocessors. According to one such example embodiment, the collateral digital assets encapsulated in the collateral pool may be in a computational three-dimensional (3D) array, thereby improving scalability and transaction processing time of the clearinghouse embedded virtual machine (VM).

Embodiments further include a computer-implemented method of providing liquidity for exchanges of digital assets. In some embodiments, the method includes executing an automated market maker (AMM) cryptographic system at an embedded cryptoprocessor of at least one node of multiple nodes in a blockchain network. The method may further include receiving collateral digital assets from other nodes of the multiple nodes. In addition, the method may include encapsulating the received collateral digital assets in a collateral pool. The method may further include encoding a collateral token from the received collateral digital assets encapsulated in the collateral pool. In an embodiment, the collateral token may be configured to consolidate liquidity within a chaincode protocol for an exchange of a digital asset. The method may further include executing a blockchain clearinghouse control system configured to process the collateral token. In addition, the blockchain clearinghouse control system may be configured to approve the exchange of the digital asset if the exchange is performed on or facilitated by the at least one node or disapprove the exchange of the digital asset if the exchange is performed separately from the at least one node. Such a blockchain clearinghouse control system thereby ensures that the exchange is secure and that the automated market maker (AMM) cryptographic system provides liquidity to support the exchange of the digital asset.

Embodiments further include a non-transitory computer program product for providing liquidity for exchanges of digital assets. In some embodiments, the non-transitory computer program product includes a computer-readable medium with computer code instructions stored thereon. The computer code instructions are configured, when executed by a processor, to cause the processor to encapsulate, via a packetizer, collateral assets, in a collateral pool three-dimensional (3D) array at a first node of a blockchain network. The collateral assets include collateral assets received from a second node of the blockchain network. In addition, the computer code instructions are configured, when executed by the processor, to cause the processor to encode a collateral token from the collateral assets encapsulated in the collateral pool three-dimensional (3D) array. The collateral token is configured to consolidate liquidity within a blockchain protocol for an exchange of a digital asset. Finally, the computer code instructions are configured, when executed by the processor, to cause the processor to implement, upon the blockchain network, a blockchain clearinghouse control system configured to approve the exchange of the digital asset in response to verifying that the exchange is performed on or facilitated by the first node or disapprove the exchange of the digital asset in response to receiving an indication that the exchange is performed separately from the first node. Such a blockchain clearinghouse control system thereby ensures that the exchange is secure and that the automated market maker (AMM) cryptographic system provides liquidity to support the exchange of the digital asset.

Alternative method and computer program product embodiments parallel those described above in connection with the example computer-based system embodiments.

It should be understood that example embodiments disclosed herein can be implemented in the form of a computer-implemented method, apparatus, computer-based system, or computer program product.

A description of example embodiments follows.

In general, blockchain is a write-once, append-many type electronic ledger. Blockchain is an architecture that allows disparate users to make transactions and creates an unchangeable record of those transactions. To move anything of value over any kind of blockchain, a network of nodes must first agree that a corresponding transaction is valid. As a peer-to-peer (P2P) network, combined with a distributed time-stamping server, blockchain ledgers can be managed autonomously to exchange information between disparate parties; there is no need for an administrator. In effect, the blockchain users are the administrator.

Blockchain's rapid development has given rise to many different kinds of chains, leading to cross-chain technology. Cross-chain, as its name suggests, allows the transmission of value and information between different blockchains. According to an example embodiment, a digital asset may be exchanged, cross-chain, securely, and despite differences between constraints or rules of operation that may be established for the different blockchains. Such a digital asset may be in the form of a token, which may be fungible, or may be a non-fungible token (NFT). Such constraints or rules may be in the form of smart contracts, or other forms. Differences between such constraints or rules may include disparate levels of rigor or leniency of such constraints or rules between or among different blockchain networks.

In some embodiments, blockchain may be a peer-to-peer (P2P), electronic ledger that is implemented as a computer-based decentralized, distributed system made up of blocks, which, in turn, are made up of transactions. Each transaction may be a data structure that encodes a transfer of control of a digital asset between participants in the blockchain system, and that includes at least one input and at least one output. Each block may contain a hash of a previous block so that blocks become chained together to create a permanent, unalterable record of all transactions that have been written to the blockchain since its inception. Transactions may contain small programs, known as scripts, embedded into their inputs and outputs; the scripts may specify how and by whom the outputs of the transactions can be accessed.

For a transaction to be written to the blockchain, it must be “validated.” Network nodes (miners) may perform work to ensure that each transaction is valid, with invalid transactions being rejected from the network. Software clients installed on the nodes may perform this validation work on an unspent transaction (UTXO) by executing its locking and unlocking scripts. If execution of the locking and unlocking scripts evaluates to TRUE, the transaction is valid and is written to the blockchain. Thus, for a transaction to be written to the blockchain, it should be: (i) validated by a first node that receives the transaction—e.g., if the transaction is validated, the node relays it to other nodes in the network; (ii) added to a new block built by a miner; and (iii) mined, e.g., added to the public ledger of past transactions.

Blockchain may be used for implementation of “smart contracts” that can be associated with digital asset. These are computer programs designed to automate execution of terms of a machine-readable contract or agreement. Unlike a traditional contract, which would be written in natural language, a smart contract is a machine-executable program that may include rules for processing inputs to generate results; these results may then cause actions to be performed depending upon those results. With respect to commercial transactions, for example, these may involve a transfer of property rights and/or assets. Such assets may include real property, personal property (including both tangible and intangible property), digital assets such as software, or any other type of asset. In the digital economy, there is often an expectation that exchanges and transfers will be performed in a timely manner and across vast distances. This expectation, along with practical, technical limitations, means that traditional forms of asset transfer, such as physical delivery of hardcopy of documents representing a contract, negotiable instrument, etc., or a tangible asset itself, are not desirable. Thus, smart contracts can provide enhanced control, efficiency, and speed of transfer.

An area of blockchain-related interest is a use of “tokens” to represent and transfer assets via the blockchain. A token thus serves as an identifier that allows a real-world item to be referenced from the blockchain. Through an initial coin offering (ICO) model, startups may raise capital by issuing tokens on a blockchain, such as Ethereum, and distributing them to token buyers in exchange for making a financial contribution to a project. These tokens, which may be transferred across a network and traded on cryptocurrency exchanges, may serve a multitude of different functions, from granting holders access to a service to entitling them to company dividends. Depending on their function, tokens may be classified as security tokens or utility tokens.

Tokens may be used, for example in an initial public offering (IPO) to issue company shares, dividends, and voting rights over blockchain networks. The tokens may include security tokens and utility tokens. The security tokens may be associated with a value that is derived from a tradable asset and, thus, may be deemed a security token that may be subject to federal laws regulating traditional securities. In contrast, the utility tokens may represent future access to a company's product(s) or service(s). A defining characteristic of the utility token is that it is not designed as an investment. Because a utility token is not issued in a form of an investment asset, it may be exempt from having to comply with federal legislation regulating securities.

Further, similar to physical assets, the tokens that represent them may have many properties, one of which is fungibility or non-fungibility. In economics, fungibility refers to equivalence or interchangeability of each unit of a commodity with other units of the same commodity. Fungible tokens (FTs) are tokens that can be exchanged for any other token with the same value.

Fungible tokens are uniform, that is, FTs of the same type are identical in specification. In other words, each fungible token (FT) is identical to another FT of the same type, and FTs are divisible into smaller amounts. Similar to currency, where bills can be divided into coins of an equivalent value, FTs are divisible. As such, a fraction of an FT can be transferred between users. Nonfungible tokens (NFTs), however, cannot be replaced with other tokens of the same type. NFTs represent nonfungible assets, e.g., assets that have unique information or attributes. Each NFT is unique and differs from other tokens of the same class. For example, while plane tickets from and to a same destination may look the same, each one has a different passenger name, seat number, etc., and, therefore, is unique. In contrast to FTs, NFTs cannot be divided, an elementary unit of the NFT is the token itself.

Due to an immutable nature of transaction histories supported by blockchain networks, it is possible to extend the aforementioned validation steps of such transactions so that the transactions become subject to certain rules that reference prior transactions, or even aspects of an initial creation of a subject digital asset, e.g., NFT. An example of such rules is an arrangement wherein royalties are paid to a creator of a digital asset each time the digital asset is sold to a subsequent owner. Such royalty payment arrangements may be implemented as a function with which the blockchain network is programmed, or using a reference table loaded into a computer memory element of the blockchain network, as a smart contract as described hereinabove, or by other means.

A further use case for cryptocurrency exchanges on a blockchain network is that such exchanges can protect transactions—similar to a manner in which a surety bond would. A surety bond or surety is a promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling terms of a contract. The surety bond protects an obligee against losses resulting from a principal's failure to meet the obligation. As cryptocurrencies evolve from fringe investments to mainstream instruments, surety bonds may become an increasingly common requirement for those looking to trade in virtual currencies.

Ordinary surety bonds act as a contract between three parties: (i) an entity requesting the bond (principal), (ii) the bond's beneficiary (obligee), and (iii) a company issuing the bond. What a surety bond does is guarantee that the principal will fulfill its obligations, whether it's completing a long-term project or processing a financial transaction, or else forfeit the bond. Cryptocurrency surety bonds work in the same basic manner, ensuring that the principal performs cryptocurrency transactions as expected, or else forfeits the bond. In this case, the contract is between an entity handling a virtual currency transaction, a regulatory entity requiring the surety bond, and a surety bond provider.

A digital asset marketplace may leverage a blockchain clearinghouse control system to enforce a contract governing transfer of tokens between electronic wallets. The contract may specify royalties to be paid to the original creator of a token upon transactions involving that token. The contract may include a revenue share table. The blockchain clearinghouse control system is configured to enforce the contract regardless of the network locations of two parties involved in a transaction, and regardless of whether or not the transaction is conducted within the digital asset marketplace. For example, even offline exchanges are made transparently viewable from within the digital asset marketplace. The blockchain clearinghouse control system may be configured to serve any token creator.

Upon creation of a token, a threshold value of that token may be set within the digital asset marketplace. The blockchain clearinghouse control system may implement rules in conjunction with the threshold value to prevent the value of the token from experiencing dramatic changes characteristic of back-door or offline transactions. As such, the threshold value may act as a minimum exchange value of the token required to activate any transaction involving the token. The blockchain clearinghouse control system may manage and approve or deny transactions accordingly. Rules such as threshold values may be based on a bounded percentage differential from a previous transaction. Such a blockchain clearinghouse control system can be implemented in a decentralized manner, such as with a smart contract. A central authority is thus not required.

Certain embodiments may offer techniques for verifying or checking an identity that protect, preserve, and maintain privacy. Safeguarding privacy within blockchain networks is an important consideration for traditional institutions such as banks and other financial institutions that may desire to interact with and/or launch smart contracts, for example, as part of digital asset transactions, but may also need to keep trade secrets and/or sensitive customer information etc. confidential. As to the latter, such institutions may also be required to comply with rules and/or regulations including, but not limited to, the Europe Union's General Data Protection Regulation (GDPR) and the United States' Health Insurance Portability and Accountability Act (HIPAA), among other examples.

In an example embodiment, such privacy-maintaining identity verification may be accomplished by use of, e.g., a “zero-knowledge proof” (ZKP). A zero-knowledge proof ensures privacy on a public blockchain by utilizing a technique whereby a first entity (or “prover”), such as a network node, a user device, or a smart contract, etc., may cryptographically prove to a second entity (or “verifier”) that the first entity possesses knowledge regarding certain information, without also disclosing the actual contents of the information.

Zero-knowledge proofs may be interactive or non-interactive. An interactive ZKP requires interaction between a prover entity and a verifier entity. A non-interactive ZKP may be constructed from any interactive scheme by relying on, e.g., a Fiat-Shamir heuristic, or any other suitable technique known to those of skill in the art.

According to an embodiment, a protocol implementing ZKPs may be presented as a transcript where a prover responds to interactive inputs from a verifier. In one such embodiment, the interactive input may be in the form of one or more challenges such that responses from the prover will convince the verifier if and only if a statement is true, e.g., if the prover does possess certain claimed knowledge.

In the context of blockchain networks, according to some embodiments, by employing a ZKP, the only information divulged on-chain is that some piece of undisclosed information is (i) valid and (ii) known by the prover with a high degree of certainty. As such, in an embodiment, zero-knowledge proofs may be used by various blockchains to furnish privacy-maintaining digital asset transactions, whereby, for example, a transaction's amount, sender electronic wallet identifier, and receiver electronic wallet identifier are kept secret. Furthermore, some embodiments relate to oracle networks that provide smart contracts with access to off-chain data and/or computing infrastructure for the AMM cryptographic systems. Such oracle networks may also employ ZKPs to prove a certain fact about off-chain data, without divulging the data itself on-chain. A method used for performing non-interactive ZKPs may be as described in D. Unruh, “Non-Interactive Zero Knowledge Proofs in the Random Oracle Model,” in2015, 2015, pp. 755-84, which is herein incorporated by reference in its entirety.

A hybrid multisignature electronic wallet may enable a licensed custodian or designee to provide signatures or keys required to approve a digital transaction. The custodian may approve transfers of tokens on digital exchange platforms such as blockchain platforms. A set of custodian signatures, potentially from multiple custodians, may be required to approve a transaction. Alternatively, the hybrid multisignature wallet may be configured in a one-of-many or a one-of-one setup, requiring only a single signature of one or more valid signatures from one or more custodians to approve the transaction. If a network allows a designated party to be a custodian, that party may enter into an agreement at the protocol level on the network to become a designated custodian. The hybrid multisignature wallet may be implemented in support of compliance operations. The custodian may facilitate recovery or replacement of lost signatures or keys, or of entire lost wallets.

The hybrid multisignature wallet may enable transactions such as token swaps, and may facilitate transfer of tokens across multiple networks. Individual networks of the multiple networks may implement rigorous or lenient constraints upon transactions performed within the respective networks. Thus, a disparity may exist between two networks involved in a token transfer. The custodian may facilitate management of such a disparity. The custodian may perform functions characteristic of an automated escrow service in conjunction with a digital exchange platform.

A composable digital asset integrates two or more individual digital assets into a new combined form, which may be referred to as an asset cluster. An asset cluster may comprise components of similar or different types. For example, an asset cluster may include an element of fungible currency such as cryptocurrency, along with a non-fungible token (NFT). Thus, combining an amount of cryptocurrency with an NFT effectively establishes a minimum value for the NFT equal to the value of the fungible cryptocurrency.

Such composable assets may find applications in areas such as finance and gaming. An example gaming application of composable digital assets involves a piece of armor having a socket, into which a gem may be placed, creating an asset cluster. Asset clusters may be decomposed at any time such that the NFT and the currency item again become separate entities on a digital exchange platform.

Composable digital assets can provide liquidity for any digital asset or token. For example, a player of a game incorporating composable digital asset clusters may use a currency component of a cluster to set an instantaneous computational value at which to sell the cluster, such as to an automatic market maker associated with the game. Composable assets may be referenced or required by contracts or rules governing transactions on a digital exchange platform, such as smart contracts.

An automated market maker (AMM) cryptographic system may be configured to provide liquidity to a platform enabling exchange of digital assets as described herein. The exchange platform may be decentralized. Liquidity may be provided using underlying collateral. An AMM cryptographic system can take in and store different forms of digital assets, such as loans, to be used as collateral in future exchanges on the platform. Such assets may be aggregated within a collateral pool, such that liquidity is pooled in association with the exchange platform. Liquidity may thus be pooled and aggregated on a blockchain supporting the collateral pool. Assets may be withdrawn from the collateral pool upon minting a collateral token. The collateral token can thus consolidate liquidity for an exchange within one protocol or contract. The collateral token may provide liquidity for a one-to-one exchange with a user looking to sell or redeem a user-held token.

A blockchain clearinghouse control system implemented upon the platform may be configured to force an exchange to be performed on the platform such that the exchange is managed by the AMM cryptographic system. A machine learning (ML) oracle of the AMM cryptographic system may set a computational value for the collateral token, and may offer the collateral token for exchange at such a computational value, thus computing the market value for that token, rather than deferring to market forces. The AMM cryptographic system may function with either a bounded or unbounded token supply, providing continuous liquidity. The AMM cryptographic system may be configured to measure supply and demand for tokens on the platform, including the collateral tokens. The AMM cryptographic system may be configured with an encoder/decoder. The AMM cryptographic system encoder minting and encoding collateral tokens.

The AMM cryptographic system may be implemented by any suitable protocol known to those of skill in the art, such as ERC-20, among other examples.

is a simplified block diagram of an example embodiment of a systemfor providing liquidity for exchanges of digital assets. The systemincludes a blockchain network-and an exchange partner-. Blockchain network-includes multiple nodes-,-, through-. It is assumed inthat n, the number of nodes in blockchain network-, is greater than or equal to three; however, this may not always be the case, as embodiments may function with as little as two nodes-,-in the multiple nodes of blockchain network-, or even with a single node-instead of multiple nodes. In, exchange partner-is shown to be implemented separately from blockchain network-; exchange partner-may be a second blockchain network where blockchain network-is a first blockchain network. It should be noted, however, that an exchange may alternatively take place entirely within blockchain network-, such as among distinct nodes of blockchain network-, in which case exchange partner-may be embodied by nodes such as node(-) or node n (-).

Continuing with respect to, node(-) is configured to perform functions of an automated market maker (AMM) cryptographic system. Such functions may include management of collateral assets shown as C(-) and C(-), stored within collateral poolprovisioned by node(-). It should be noted that while two collateral assets, namely, C(-) and C(-), are shown to occupy collateral pool, it may be possible for collateral poolto include any number of collateral assets so long as memory capabilities provided by node-hosting collateral poolare not exceeded. Collateral asset C(-) is shown as being received by node(-) from node(-) before being stored in collateral poolat node(-). A collateral token (TC)is shown into be minted from assets of collateral pool. Value is thus withdrawn from an aggregated pool of collateral assets to provide liquidity for an exchange of a digital assetwith exchange partner-on a blockchain-enabled exchange platform.

Configured upon blockchain network-of systemis blockchain clearinghouse control system. The blockchain clearinghouse control systemmay be set up to approvean exchange of digital assetfor collateral tokenif the exchange is performed on or facilitated bya node configured to perform functions of an automated market maker (AMM) cryptographic system, which inis shown to be node(-). Likewise, clearinghouse modulemay be set up to block or disapprovethe exchange if the exchange is performed apart from the node configured to perform functions of an automated market maker (AMM) cryptographic system, such as by node n (-) of system.

In some embodiments of system, the node represented by node(-) inmay include a machine learning oracle module configured to configure a computational value for collateral token (TC)and to offer collateral token (TC)for exchange with a digital asset such as digital assetat the configured computational value, thereby dictating an exchange value of collateral token (TC). The node represented by node(-) inmay be further configured to measure supply of, and demand for tokens among multiple nodes-,-,-of blockchain network-. Such tokens may include collateral token (TC). In some embodiments, blockchain network-may provide a decentralized platform for exchange of digital asset. The node represented by node(-) inmay provide continuous liquidity for the exchange of the digital assetvia systemby iteratively minting collateral tokens, such as collateral token (TC), from either a bounded or unbounded supply of collateral assets, such as C(-) and C(-). In some embodiments, collateral assets, such as C(-) and C(-), may include loans. The digital assetmay be a non-fungible token (NFT).

is a flow diagram of an example embodiment of a computer-implemented methodof providing liquidity for exchanges of digital assets such as digital assetof system(). In some embodiments, methodstarts at stepby executing an automated market maker (AMM) cryptographic system at an embedded cryptoprocessor of at least one node, e.g., node-, of multiple nodes in a blockchain network, e.g., nodes-,-, through-of blockchain network-(). Next, at step, methodmay receive collateral digital assets, e.g., collateral assets-,-(), from other nodes of the multiple nodes. The methodmay then, at step, encapsulate the received collateral digital assets in a collateral pool, e.g., collateral pool(). At step, methodmay encode a collateral token, e.g., collateral token (TC)(), from the received collateral digital assets encapsulated in the collateral pool. In an embodiment, the collateral token may be configured to consolidate liquidity within a chaincode protocol for an exchange of a digital asset, e.g., digital asset(). Last, at step, methodmay execute a blockchain clearinghouse control system, e.g., blockchain clearinghouse control system(), configured to process the collateral token. According to an embodiment, the blockchain clearinghouse control system may be configured to approve the exchange of the digital asset if the exchange is performed on or facilitated by the at least one node or disapprove the exchange of the digital asset if the exchange is performed separately from the at least one node. Such a blockchain clearinghouse control system thereby ensures that the exchange is secure and that the automated market maker (AMM) cryptographic system provides liquidity to support the exchange of the digital asset.

In some embodiments, methodofmay further include configuring a machine learning (ML) oracle module of node-to compute a computational value for collateral token (TC)and offer collateral token (TC)for exchange at the computed computational value, thereby computing a market exchange value of collateral token (TC). The methodmay further include configuring node-to measure supply of, and demand for, tokens among nodes-,-, through-of blockchain network-. Such tokens may include collateral token (TC). In method, blockchain network-may provide a decentralized platform for exchange of digital asset. In some embodiments, methodmay further include providing continuous liquidity for exchange of digital assetby configuring node-to iteratively mint collateral tokens, such as collateral token (TC), from either a bounded or unbounded supply of collateral assets, such as C(-) and C(-). In some embodiments, collateral assets, such as C(-) and C(-), may include loans. The digital assetmay be include a non-fungible token (NFT). In an embodiment, blockchain clearinghouse control systemmay be implemented as a clearinghouse embedded virtual machine (VM) executing on one or more cryptoprocessors. According to one such embodiment, the collateral digital assets encapsulated in the collateral pool may be in a computational three-dimensional (3D) array, thereby improving scalability and transaction processing time of the clearinghouse embedded virtual machine (VM).